Annual Filing of LLP- Form 8, Form 11

An LLP in India has to file its annual return compulsorily. Unlike companies, LLPs must mandatorily maintain their financial year from 1 April to 31 March. Therefore, the LLP annual return is due on 30 May and the account and solvency statement is due on 30 October of each financial year. In addition to the annual MCA return, LLPs are also required to file an income tax return every year. In this article, we will discuss annual filing of LLP.

What is Form 11?

Form 11 is an annual return to be filed by all LLPs irrespective of turnover during the year. Even if the LLP does not carry out any operations or business during the financial year, Form 11 is required to be filled. Apart from the basic information about the name, and address of the LLP, and details of partners/designated partners, other details that need to be provided are:

• Total Contribution of/to partners of LLP
• Details of notices received of imposed penalties/compounded offenses committed during the financial year.

What is Form 8?

Form 8 is a statement related to account and solvency. It is a declaration by the LLP to the ROC that the financial position of the LLP is sound and that it can pay its liabilities or debts and also contains the key details of the financial statement of the LLP. The deadline for filing Form 8 LLP is 30 October of each financial year.

Filing of LLP Annual Return (Form -11)

Every LLP registered under the Act is required to file an annual return in Form 11 under Section 35(1) of the LLP Act, 2008 within 60 days of the end of the relevant financial year i.e. 30th May.

Form -11 is submitted to report details of partners, their contribution, and details of the legal entity in which they hold the position of director.

The form must be digitally signed by two designated partners and verified by a practitioner if necessary.

In case of failure to fill the form before the due date, additional charges of Rs. 100 per day is collected till the date of submission.

Filing of LLP Annual Accounts (Form -8)

Every LLP registered under the Act is required to prepare books of account in Form 8 under Section 34(2) of the LLP Act, 2008 within 30 days from the end of six months from the date on which the financial year ends i.e. 30th October.

Form -8 is filed for reporting the statement of solvency and statement of accounts and income and expenditure for the year and disclosure under the MSMED Act, 2006.

The form must be digitally signed by two designated partners and verified by a practitioner.

In case of failure to fill the form before the due date, additional charges of Rs. 100 per day is collected till the date of submission.

Information and documents required to submit LLP form 11

The following information and documents are required to file an LLP annual return:

• LLP Identification Number
• Name of LLP
• LLP registered office address
• LLP Business Classification (Trade, Profession, Service, Occupation, Other)
• Main business activities of LLP
• Details of Designated Partners and LLP Partners
• Total contribution liability of LLP partners
• Total contribution received by all LLP partners
• Overview of designated partners and partners
• Penalties imposed on the LLP
• Details of compound offenses, if any
• Details of the LLP and/or company in which the partner/designated partner is a director/partner (this particular is mandatory to attach in case the partner/designated partner is a partner in any LLP and/or a director in any company)

It is important to note that once an LLP annual return is filed, it cannot be resubmitted. Further, the total contribution received by all partners of the LLP shown in Form 11 of the LLP’s annual return must be matched with the LLP’s Form 8 Statement of Accounts and Solvency to be filed by 30 October. Therefore, it is important to get professional help in preparing and filing the LLP annual return.

Important aspects to consider while filing LLP annual return

Some of the important pointers that all LLPs must note while filling the Form 11 are as follows:

• Using the pre-check button available on the form can help verify the entered data. This will help in flawless (error-free) data processing.
• Wherever information is given on the forms, it must be given as of 31 March.
• Details of the LLP and/or company in which the partners/designated partners (DPs) are directors/partners. (This particular is mandatory to attach in case any of the partners/RP is a partner in any LLP and/or a director in any other company).
• The electronic form requires certification by a practicing company secretary if any of the following conditions are met:

1. The total contribution from Partners is more than Rs. 50 lakhs, or
2. The turnover of LLP is more than Rs. 5 crores

If the numbers are within/below the above limits, the e-form can be validated by the designated partner itself. For more information visit LLP annual filing. Please note that there is no provision for the resubmission of this electronic form.

Additional Compliance with LLP

Income Tax Return (ITR): LLP must be filed by LLP every year to Income Tax Department before the due date. The deadline for filing ITR is July 31 for LLPs whose accounts do not need to be audited under any law. And in case the financial statements have to be audited under any law, the due date will be September 30.

DIR-3 KYC: Every Designated LLP Partner holding a Director Identification Number (DIN) allotted on or before 31st March of every financial year has to file a DIR-3 KYC. If KYC is not filed before the due date, a fine of Rs. 5000 is charged and the DIN will be marked as ‘deactivated’ with the reason as ‘DIR-3 KYC not submitted’.

Final words

Failure to comply with any of the above requirements can result in heavy fines and even cancellation of your LLP. So make sure you stay on top of things and follow the rules! The Legal Window can provide you with professional assistance in filling the annual returns (Form 11 and Form 8) in a quick and easy process.